Category: Wine Economics

OIV’s 2024 Report on the Global Wine Sector: Emphasizing Adaptation and Multilateral Cooperation

The International Vine and Wine Organisation (OIV) reinforced the importance of multilateral cooperation and adaptation to changing conditions, as global data on the wine sector in 2024 was released at its online Press Conference April 15th,2025.

The OIV also released statistics on production, consumption and trade from all producing and consuming nations (over 180) to create a snapshot of the sector in the 2024 calendar year.

The data highlights the effects of climate change, shifting consumer preferences and geopolitical uncertainty upon the sector.

OIV Director General, John Barker, said that these impacts present a challenge of adaptation for the wine sector, but that successful adaptation would bring opportunities.

“Working together to develop solutions to climate change and making wine a beacon of sustainability; investing in research on new audiences so that we can see wine through their eyes; reinforcing our commitment to multilateralism and global trade: these are the elements that will lead the wine sector forward.

The OIV has a key role as the global reference for vine and wine, uniting 51 countries to promote cooperation, harmonization and knowledge sharing around the key challenges and opportunities for the sector.”

KEY DATA AND INSIGHTS

Decrease in global vineyard area slows

The global vineyard surface area has been decreasing for the past four years. A contraction of 0.6% to 7.1 million hectares in 2024 showed a slower rate of decrease. The downward trend is driven by vineyard removals across major vine growing regions, but a few countries are showing a dynamic of expansion of their vineyards.

World wine production faces climate change

Global wine production in 2024 is estimated at 226 million hectolitres, the lowest in over 60 years, down 5 % compared to 2023. This is largely due to unpredictable and extreme weather events in both Northern and Southern Hemispheres caused by climate change.

New consumption patterns and diversity of the markets

In 2024, global wine consumption is estimated at 214 million hectolitres (mhl), a 3.3% decrease compared to 2023. If confirmed, this would represent the lowest global consumption level since 1961.  This is due to an intersection of economic and geopolitical factors generating inflation and creating uncertainty, as well as a decline in mature markets shaped by evolving lifestyle preferences, shifting social habits and generational changes in consumer behaviour.  However, across 195 countries, wine has never been so widely consumed worldwide. It has also been recalled that a number of countries that combine strong overall consumption with very large populations still offer significant growth potential.

Equilibrium between production and demand

Despite ongoing declines in both production and consumption, global market equilibrium is expected to hold in 2024, as production is unlikely to exceed demand_ continuing the trend seen with the small 2023 harvest. Two consecutive years of low output may help stabilize the market, though stock levels are likely to remain uneven across regions.

International trade holds volumes and value

Export volumes held steady at 99.8 million hectolitres (mhl). Export value slightly declined by 0.3% to 36 billion EUR, but remains at a historically high average export price of 3.60 EUR/litre. Inflation and low supply continue to keep prices high compared to pre-pandemic years (almost 30% above).

Academic Study Forecasts Wine Industry Revival by 2026

A recent study by the University of Bordeaux and the University of Verona suggests the wine industry could see a recovery starting in 2026. The research used Italian wine producer Masi as a case study. A few weeks ago, an academic research paper “Resilience and preparation for the next cycle of global wine consumption. Masi: an original case study” was presented in Milan by Jean-Marie Cardebat, Professor of Economics at the University of Bordeaux, Director of the ECOr Research Department, Affiliate Professor at INSEEC Grande École and Director of the Wines & Spirits Chair in Paris, together with Davide Gaeta, Professor and lecturer in wine business economics and agri-food markets and competitiveness – Department of Management – University of Verona.

Professor Cardebat explained that economic cycles have always influenced global wine consumption. While current economic and geopolitical challenges have caused a decline in the market, he believes that controlling inflation could lead to a turning point in 2026. He also predicted that 2027 might mark the start of a recovery phase with sustained growth for the wine sector. However, he emphasized that this recovery would not replicate past market conditions. Changes in consumer behavior and new trends will shape the next phase of the industry.

Professor Cardebat also highlighted the importance of premiumization, with consumers increasingly seeking quality and high-value wines. He stressed the need for wineries to invest in brand development and enhance consumer experiences, such as wine tourism, which has grown significantly in recent years. He also noted that emerging markets might drive a renewed interest in red wine, which has declined in Europe.

Professor Gaeta outlined key factors for resilient wine companies to thrive in international markets. These include having a strong organizational structure, transparent information management, and strategies to diversify product offerings. He emphasized the importance of flexibility in responding to changing demand, both in grape supply and product range. Gaeta also pointed out that segmenting distribution and maintaining a diverse presence in global markets can help mitigate risks and create growth opportunities.

Additionally, Professor Gaeta noted that competitiveness in the wine industry can be strengthened through attention to corporate identity, strategic marketing, and innovation focused on sustainability. Both professors agreed that adapting to new consumer preferences and market conditions will be essential for the wine industry to navigate future challenges and opportunities.

UK Wine Tourism Soars 55% – A Must-Visit Wine Destination

The UK wine tourism industry continues flourishing, demonstrating its critical role in supporting vineyards and rural economies. According to WineGB’s Tourism Report 2024, vineyard visits rose by 55% in 2023 compared to the previous year, reaching an impressive 1.5 million. This influx of tourism now accounts for a substantial 25% of vineyard revenue.

Wine tourism’s allure is far-reaching, with VisitBritain’s MIDAS Report indicating that 42% of inbound international tourists expressed strong interest in visiting a UK winery during their stay—equating to a potential 16 million visitors. The ongoing expansion of wine tourism showcases its importance as both an economic driver and a cultural attraction.

The UK’s 300 vineyards and wineries open to visitors have embraced this momentum, offering diverse experiences ranging from vineyard picnics and tours to fine dining and luxurious on-site accommodations. Estates are actively enhancing their appeal to attract both domestic and international guests.

WineGB has also launched the “Visit a Vineyard Guide” which highlights these offerings and provides detailed information for wine enthusiasts. In addition, WineGB urges policymakers to implement measures that will help sustain the sector’s growth. Among the proposed actions, 60% of producers forecast visitor numbers to rise by over 20% in the next five years, underscoring the need for strategic investment.

Collaborative efforts, such as training programs with VisitEngland and partnerships with Knight Frank, have further elevated the visitor experience, cementing wine tourism as an essential facet of the UK’s rural economy. Looking ahead, WineGB plans to unveil “The WineGB Guide to UK Wine Tourism” before the August Bank Holiday, featuring exceptional vineyard experiences, from tastings to cultural events.

As the industry flourishes, the growing popularity of English sparkling wine further highlights the UK’s burgeoning reputation in the global wine scene.

WineGB’s “Visit a Vineyard Guide” https://lnkd.in/em8UzvwY

Top 10 Countries with the Heaviest Wine Import Tariffs in 2025

Examples of these challenges include the United States’ proposed 200% tariff on European wines, China’s recently lifted 218% tariffs on Australian wines, and the consistently high import duties imposed by emerging markets such as India and Indonesia (OIV, 2024). These key examples illustrate how wine often becomes entangled in broader economic and geopolitical conflicts.

Below are listed [from low to high] the ten most significant wine import tariffs globally, encompassing both Most Favoured Nation (MFN) tariffs and retaliatory measures. Furthermore, distinctions between tariffs imposed on bottled versus bulk wine are discussed where relevant.

1. Russia – 20% on EU wines (potential 200% retaliation) (EU Commission, 2024)

Russia increased its tariff on wines from “unfriendly nations” (mainly the EU, US and UK) from 12.5% to 20% in 2023. This measure, in retaliation for Western sanctions, applies equally to bottled and bulk wine. Russian officials have threatened a 200% protective tariff on EU wines in response to continued sanctions, which would effectively eliminate European wine from the Russian market. Wine from “friendly” nations (e.g., Chile, Armenia, South Africa) continues to enter under lower or duty-free terms.

2. Brazil – 27% MFN tariff on all imported wine (WTO, 2024)

Brazil applies a 27% import duty under the Mercosur Common External Tariff, making it one of the highest base tariffs among major economies. This rate applies to both bottled and bulk wine, with no preferential treatment for large shipments. Additional state and federal taxes often push final retail prices far higher.

3. Morocco – 49% MFN tariff (Moroccan Trade Ministry, 2024)

Morocco imposes an approximate 49% MFN tariff on imported wine. While the European Union benefits from reduced rates due to a trade agreement, non-preferential nations face steep barriers. The tariff applies to all types of wine equally, without distinction between bottled and bulk.

4. Vietnam – 50% MFN tariff (phased reductions for trade partners) (Vietnam Ministry of Trade, 2024)

Vietnam applies a 50% MFN tariff on wine imports. However, it has gradually reduced tariffs for the EU, Australia and Chile through free trade agreements, with European wine set to enter duty-free by 2027. The 50% rate still applies to non-preferential wines, including those from the United States.

5. Indonesia – 90% MFN tariff on all wine categories (Indonesia Trade Authority, 2024)

Indonesia enforces a 90% import duty on all wines, whether bottled or bulk. Additional taxes, including excise duties and VAT, often make wine prohibitively expensive, with retail prices sometimes three to four times the import cost. The high tariff aligns with religious and social restrictions on alcohol.

6. India – 150% tariff on imported wines (Indian Ministry of Commerce, 2024)

India imposes a 150% import duty on all wines, one of the highest rates globally. Though free trade negotiations with the EU and UK are ongoing, no major reductions have been secured. Australia has managed to reduce duties for premium wines through a trade deal, but for most exporters, India remains one of the toughest wine markets due to state-level excise duties that further raise costs.

7. Iraq – 200% tariff on all alcohol imports (Iraqi Trade Authority, 2024)

Iraq levies a 200% import duty on all alcoholic beverages, including wine. This extreme tariff, in place since 2016, is one of the highest globally, effectively tripling the cost of imported wine. There are few exceptions, with only diplomatic imports and some tourism-sector imports avoiding the full tariff burden.

8. United States – Proposed 200% tariff on EU wine (unconfirmed) 

US President Donald Trump has proposed a 200% tariff on European wine in retaliation for EU tariffs on US goods. While this tariff has not been formally imposed, its potential impact would be catastrophic for EU wine exports, as the US remains a key market for European producers. If enforced, it would likely eliminate most European wine sales in the US.

9. Malaysia – 150–250% effective tax on wine (Malaysian Trade Ministry, 2024)

Malaysia employs a complex tax system where import duties, excise taxes, and VAT combine to impose an effective 150% to 250% tax on imported wine. Unlike other countries with simple ad valorem tariffs, Malaysia calculates duties based on alcohol content and volume, making it one of the most expensive markets for wine imports.

10. Egypt – 1,800% MFN tariff on still wine, 3,000% on sparkling wine (WTO, 2024)

Egypt imposes a staggering 1,800% tariff on still wine and 3,000% on sparkling wine, making it the highest import tariff in the world for wine. These tariffs effectively ban foreign wine imports, with only limited exemptions for the tourism sector where a 300% tariff plus VAT applies.

Source:  The Drinks Business UK

The Institute of Masters of Wine Announce the Induction of Four New Members

The Institute of Masters of Wine (IMW) has recently announced the induction of four new members into its membership. These newly appointed Masters of Wine (MWs) have successfully completed and surpassed all the rigorous stages of the Master of Wine examination.

Jit Hang Jackie Ang MW (Singapore), Amanda Barnes MW (Argentina), Sarah Benson MW (UK), and Kathleen Van den Berghe MW (Belgium) have now earned the prestigious ‘Master of Wine’ title and are the first cohort of the 2025 vintage of Masters of Wine.

There are now 425 active Masters of Wine based in 30 countries, spanning a wide range of areas in the wine industry and each making their own contribution to it. The Master of Wine credential is the most coveted in the wine industry and comes after proving one’s understanding of all aspects of wine by passing most rigorous examination in the wine world.

The MW exam consists of three parts: the theory and practical exams taken at the end of stage two and the research paper (RP) submitted at the end of stage three. The RP is an in-depth study on a wine related topic from any area of the sciences, arts, humanities or social sciences. Completion of the exam seeks to represent an all-encompassing knowledge of the industry, and only when an individual passes the RP do they become a Master of Wine.

All members must sign the IMW’s code of conduct before they have the right to use the title Master of Wine or the initials MW. By signing the code of conduct, MWs agree to act with honesty and integrity and to use every opportunity to share their understanding of wine with others, echoing the IMW’s mission to foster excellence, interaction and learning.

IMW Chair, Roderick Smith MW, states: “It is with the greatest pleasure and pride that I welcome into our membership these four new Masters of Wine. This is a herculean achievement and marks the most significant milestone on anyone’s career in wine. Our congratulations to all of them on their amazing success.”

IMW Executive Director, Julian Gore-Booth, further added: “We are delighted to welcome these four exceptional individuals to the IMW. Earning the MW title is a remarkable achievement, reflecting an unparalleled depth of knowledge, dedication and passion for wine. We look forward to their contributions to the Institute and to the global wine community as Masters of Wine.”

MEET THE NEW MASTERS OF WINE

Jit Hang Jackie Ang MW (Singapore)
Jackie Ang is a trained pharmaceutical scientist and a wine educator. He is born and based in Singapore and holds a DPhil in Medical Sciences from the University of Oxford and a MA in Pharmacology from the University of Cambridge. Jackie is currently the Director of Cherwell Wine and Spirits, a WSET APP based in Singapore and also heads the High Throughput Screening group at the Experimental Drug Development Centre, a national platform for drug discovery in Singapore. He has over 10 years of experience in holding wine events, masterclasses, teaching and wine judging. Jackie is most passionate and interested in uplifting standards in wine knowledge and service in Asia and acting as a bridge between producers and consumers from different cultures and backgrounds.

Research paper: Are Universal Glasses Truly Universal? — An investigation on whether glassware shape affects perceptions of red and white table wines made from international varieties.

Amanda Barnes MW (Argentina)
Amanda is an award-winning wine writer, presenter and consultant. Although born and raised in Hampshire, England, she has been based in South America since 2009 exploring and communicating about the people, wines and regions both on and off the beaten path.

She is considered a leading authority on the wines of the region and is author of The South America Wine Guide: The Definitive Guide to Wine in Argentina, Chile, Uruguay, Brazil, Bolivia & Peru. Amanda is also key contributor for major UK and US wine publications and books and Regional Chair for Chile in the Decanter World Wine Awards.

Research paper: The future of South American Criolla — poised for revival, or demise to the point of no return?

Sarah Benson MW (UK – England)
With a background in languages, Sarah transitioned from a career in translation to the wine industry after completing several WSET courses. She began at Accolade and has since built extensive experience in wine buying and marketing across independent and large retail, as well as UK bottling. Her passion has led her to work vintages in multiple countries. Currently, Sarah buys wine for the Co-op, sourcing and blending wines from France, Spain, South America and Greece. She has conducted consumer profiling research with Lallemand and is committed to consumer engagement. A strong advocate for sustainability, she drives the Co-op’s ethical agenda and has supported wineries in obtaining Fair Trade certification. Sarah also judges on prestigious wine panels, mentors future industry professionals and travels extensively to deepen her expertise.

Research paper: An Analysis of the Cultural Perception and Interpretation of Wine Through the Work of Four Baroque Artists

Kathleen Van den Berghe MW (Belgium)
Born into a family of wine enthusiasts, Kathleen grew up with wine tastings and winery visits. After five years as a construction engineer and nine years at McKinsey & Company, she became a wine entrepreneur in 2010. She acquired and revitalized two Loire Valley estates: Château de Minière in Bourgueil (2010) and Château de Suronde in Quarts de Chaume Grand Cru (2016), producing high-quality organic and biodynamic wines. She has also developed wine tourism, an artist residence, and a contemporary art collection.

With studies in viticulture, winemaking, WSET and Master of Wine, she blends wine, engineering and entrepreneurship. Fluent in multiple languages, she lives in Belgium with her husband, children, and extensive library. She is particularly proud of her red sparkling Cabernet Franc.

Research paper: A comparative analysis of different techniques to reduce haloanisoles in contaminated wine.